What IRS is saying about Rental real estate enterprise Safe Harbor:
Solely for the purposes of 199A, a safe harbor is available to individuals and owners of passthrough entities. Under the safe harbor a rental real estate enterprise will be treated as a trade or business for purposes of the QBI deduction. Taxpayers may still treat rental real estate that doesn't meet the requirements of the safe harbor as a trade or business for purposes of the QBI deduction if it is a section 162 trade or business.
Tax Tips
The Federal Standard deduction went up resulting in many not taking the time to itemize their deductions. Caution: You may still benefit from itemizing for your state.
Did you know that a 529 college savings plan can be used for education expenses other than college?
Miscellaneous tax deductions are gone from your individual tax return. If you have out of pocket job related expenses, consider asking your employer for an accountable plan.
What increases your chance of audit? Math errors, failing to report all of your income, claiming too many charitable deductions that are not in balance with income, multiple years of losses on businesses and rental properties, or just being a higher income earner, will all gain extra scrutiny on your tax returns. Be organized, keep well documented proof of your tax deductions, confirm you are eligible for tax credits, and know the updated tax laws or ask a professional!